Not sure what to do! Help - 540k! in the hole.

[madeamess]

Ok so I got into a terrible business deal and signed a lease as a persoanl guarantor. My company could not secure a loan and now I am being sued for the remainder of the lease agreement at 540,000.00.

I am never late on any of my other bills but, there is now we my family can pay this debt. Can anyone give me some good advice? Chapter 7 or 13? This has all hit me at once and I don't know where to go from here. Please help.

[Flamingo]

For something like this, see a good business BK lawyer right away!

[madeamess]

what do you suggest? I am in a bit of a panic.

[Snickers]

First, look for an Attorney that deals in business BK. Local newspaper, phone book, web...just search around. Most will offer a free consultation. Schedule the free consultations with a few different ones. You might even find some local ones which will make things easier.

After talking to a few, you will have a pretty good sense of both your options and the fees involved. Plus, by talking to a few different ones, you can retain the one that you feel most comfortable with and walk away from any whose fees seem excessive etc.

[Flamingo]

what do you suggest? I am in a bit of a panic.

No need to panic - it's not really the end of the world, remember that! On Monday morning, call your state bar association (look in your phone book under your "state" section, or there may be a listing under your "lawyer" section), explain your situation and request a referral for a business BK attorney in your area. Best of luck to you!

[Kkole425]

We got our attorneys name from our account. We did a google search on him and only read good things. We are very happy with him. Ask around to other business people. Everyone knows someone who is going thru this right now. Good luck!

[HHM]

Basically, you will more than likely do a non-consumer chapter 7 bankruptcy. Schedule some consults with bankruptcy attorneys. That is really your only way out of this, and probably the BEST, most cost effective, thing you can do. There is no shame, this is what happens when businesses fail. If a business owner hasn't filed BK at least once, then that means they never took a risk.

[madeamess]

Basically, you will more than likely do a non-consumer chapter 7 bankruptcy. Schedule some consults with bankruptcy attorneys. That is really your only way out of this, and probably the BEST, most cost effective, thing you can do. There is no shame, this is what happens when businesses fail. If a business owner hasn't filed BK at least once, then that means they never took a risk.

So after doing some research, my non-consumer debt is way more than 50% of my total personal debt. Can filing with a non-consumer ch 7 protect my wife? Everything we have purchased over the last nine years has all been jointly financed. The business debt that i personally guaranteed is only in my name...sorry for all of the questions.

[HHM]

Your wife will probably need to file with you.

[lostindebt]

I am in your EXACT situation. We are currently trying to file 7. Due to the size of your debt you dont qualify for ch 13. Since you have more than 50% business debt you CAN qualify for 7. The means test is null in this sitution. However you do need to still qualify by having less than $100 disposable income or the trustee could reject your 7 and then your only option is ch 11.

Its messy and stressful and does take some work to get it all lined up. We have been at this now 3 months and wont file until next June.

Go see several lawyers who specialize in business BK, and who are very familiar with your local trustee's. We saw 9 lawyers become deciding on one.

Good luck - read the boards, research good attorneys, go to as many free consults as possible.

[tiger4life]

Sort of same situation here too. My company is 177,000 in debt and my signature is on most debt, My wife is not on any of the company debt, i was told by my lawyer that I will need to file personal and business but my wife will not have to file.

Is this correct and is there anyway i can get by not filing personal.

[Dewey]

So after doing some research, my non-consumer debt is way more than 50% of my total personal debt. Can filing with a non-consumer ch 7 protect my wife? Everything we have purchased over the last nine years has all been jointly financed. The business debt that i personally guaranteed is only in my name...sorry for all of the questions.

Are you in a community property state?

[HHM]

Sort of same situation here too. My company is 177,000 in debt and my signature is on most debt, My wife is not on any of the company debt, i was told by my lawyer that I will need to file personal and business but my wife will not have to file.

Is this correct and is there anyway i can get by not filing personal.

Actually, the business would not need to file (it is odd that your lawyer would even suggest that), but you, personally, WILL DEFINITELY need to file. Businesses cannot receive a discharge in bankruptcy, so all that happens is the business closes. Most people can close a business themselves. But to get yourself out of debt, you will need to do a personal BK, no way around that.

[madeamess]

Are you in a community property state?

I live in Florida.

What should I expect out of this? Am i going to be left with an empty house or no house at all? Furniture and Cars taken?

I really have no assets. Unfortuneately, I have two homes one that has a home equity line of credit on it that I used to purchase my current home. Both of these locations are worth less than what I owe. I am actually taking a loss each month on my rental. I have a 401k, one car and furniture.

I am unsure of what to expect...